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Despite its impressive fundamentals, NASDAQ:URBN remains undervalued.

By Mill Chart

Last update: May 23, 2024

URBAN OUTFITTERS INC (NASDAQ:URBN) was identified as a decent value stock by our stock screener. NASDAQ:URBN scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.


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Valuation Assessment of NASDAQ:URBN

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:URBN has achieved a 7 out of 10:

  • Based on the Price/Earnings ratio of 11.70, the valuation of URBN can be described as reasonable.
  • Based on the Price/Earnings ratio, URBN is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
  • URBN is valuated cheaply when we compare the Price/Earnings ratio to 28.49, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 9.76 indicates a reasonable valuation of URBN.
  • 82.40% of the companies in the same industry are more expensive than URBN, based on the Price/Forward Earnings ratio.
  • URBN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.06.
  • URBN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. URBN is cheaper than 78.40% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, URBN is valued a bit cheaper than the industry average as 79.20% of the companies are valued more expensively.
  • URBN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • URBN has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Examination for NASDAQ:URBN

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:URBN has achieved a 6:

  • URBN has a Return On Assets of 7.00%. This is in the better half of the industry: URBN outperforms 73.60% of its industry peers.
  • Looking at the Return On Equity, with a value of 13.62%, URBN is in the better half of the industry, outperforming 71.20% of the companies in the same industry.
  • URBN has a Return On Invested Capital of 9.19%. This is in the better half of the industry: URBN outperforms 69.60% of its industry peers.
  • The 3 year average ROIC (8.69%) for URBN is below the current ROIC(9.19%), indicating increased profibility in the last year.
  • With a decent Profit Margin value of 5.58%, URBN is doing good in the industry, outperforming 76.80% of the companies in the same industry.
  • URBN's Operating Margin of 7.53% is fine compared to the rest of the industry. URBN outperforms 76.00% of its industry peers.

Analyzing Health Metrics

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:URBN has earned a 6 out of 10:

  • An Altman-Z score of 3.47 indicates that URBN is not in any danger for bankruptcy at the moment.
  • URBN has a Altman-Z score of 3.47. This is in the better half of the industry: URBN outperforms 72.80% of its industry peers.
  • URBN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

How do we evaluate the Growth for NASDAQ:URBN?

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:URBN has achieved a 5 out of 10:

  • The Earnings Per Share has grown by an impressive 73.71% over the past year.
  • The Earnings Per Share is expected to grow by 9.59% on average over the next years. This is quite good.
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of URBN for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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URBAN OUTFITTERS INC

NASDAQ:URBN (7/12/2024, 7:06:26 PM)

After market: 46.7 +0.03 (+0.06%)

46.67

-1.39 (-2.89%)

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